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VAT back on personal car leasing?
First time poster, so please be kind! :-) My question is around VAT on personal car leasing and reclaiming this.
I am a director of a limited company and looking into leasing a car for a combination of personal and business use.
Leasing the car through the company does not make sense due to the BIK tax which appears to skew the cost benefit so I will likely do this through a personal lease.
I wasn't even considering that there would be any tax benefits to doing this, until I read the MSE guide to car leasing and the following, which caught my attention:
If you’ve got your own business, and it's VAT-registered, you can lease a car, keeping it off your balance sheet, deducting the cost from your profit, and reclaim 50% of VAT.
My interpretation of this is that I can take out a personal lease on the vehicle, paying for this personally and claim back 50% of the VAT - can anyone verify if this is correct and if so, how you go about claiming it back.
Am I missing something obvious here?
:money:
I am a director of a limited company and looking into leasing a car for a combination of personal and business use.
Leasing the car through the company does not make sense due to the BIK tax which appears to skew the cost benefit so I will likely do this through a personal lease.
I wasn't even considering that there would be any tax benefits to doing this, until I read the MSE guide to car leasing and the following, which caught my attention:
If you’ve got your own business, and it's VAT-registered, you can lease a car, keeping it off your balance sheet, deducting the cost from your profit, and reclaim 50% of VAT.
My interpretation of this is that I can take out a personal lease on the vehicle, paying for this personally and claim back 50% of the VAT - can anyone verify if this is correct and if so, how you go about claiming it back.
Am I missing something obvious here?
:money:
0
Comments
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Best bet is speak to your accountant, these are the sorts of things you pay him/her for.0
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